Let’s start with some volume flow on a weekly SPY chart.
Volume flow has and still is bullish. It is though at extreme levels and normally at this stage market consolidates. We are close to All Time High and I wonder what them market makers have in mind, I bet there are lots of short stop loss orders just above or close to ATH.
Furthermore, notice that rising wedge pattern on the weekly chart. The rise is parabolic, I admit but there have been several occasions when there have been similar bull runs, at even more steep rising angle for up to 400 days without any significant pullbacks!
I drill down directly to a 1h chart because there is not much of interest on the daily time frame IMO.
The chart below could promise intraday and swing traders some fun for next week. Notice the large rising wedge combined with maxed out volume flow. Add to the mix that we are at ATH and I’m quite sure that odd price action will take place around here (long exits, short tryouts, MM’s gunning for short positions etc)..
